Future Lifestyle to issue 51.44 lakh equity shares to IFC; stock dips 1%

The proposed fundraises from IFC and Promoter Entity, would be inter-alia utilized towards enhancing stake in subsidiaries & associates of FLFL and debt reduction.

Feb 20, 2020 07:02 IST India Infoline News Service

Future Lifestyle board on Thursday has approved to issue 51.44 lakh shares at Rs414 per share on preferential basis to International Finance Corporation (IFC) and issue of 96.61 lakh equity shares at Rs414 on preferential basis to FQS Trading Private Limited, a promoter group entity.

The stock is currently trading at Rs385.50, down by Rs3.5 or 0.9% from its previous closing of Rs389 on the BSE.

The proposed fundraises from IFC and Promoter Entity, would be inter-alia utilized towards enhancing stake in subsidiaries & associates of FLFL and debt reduction. This apart from being EPS accretive, cost optimization and improving cash flows will simplify FLFL's Operations and Investment structures.

“Issue of 51.44 lakh equity shares of face value Rs2 each of the company at an issue price of Rs414 per Equity Share (including premium of Rs4,121 per Equity Share) aggregating to Rs212,99,99,778 on preferential basis to International Finance Corporation ("IFC") (a Registered Foreign Portfolio Investor), in accordance with the provisions of Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR Regulations"), as amended from time to time and subject to execution of requisite documentation, the approval of the shareholders of the Company and other applicable approval{s) and/or permission(s) from relevant regulatory authority,” the company said.

IFC is a member of the World Bank Group and is the largest global development institution focused on the private sector in emerging markets.

Enabling resolution giving authority to issue of Non-Convertible Debentures (NCDs) /other securities on private placement basis, for value up to Rs400cr, in one or more tranches, within one year, subject to approval by the Shareholders of the Company. This will be utilized towards replacing existing debts in the Company to improve maturity profile and reduce overall finance cost, it added.

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